Boston Scientific Shares Up 2% As J.P. Morgan Upgrades To Overweight

Boston Scientific shares rose 2% in premarket trade, after J.P. Morgan upgraded the stock to overweight from neutral after it lagged peers in 2014. "After an extended period of underperformance, we view our liability and litigation concerns as largely priced in and expect performance to improve materially in the months ahead as investors anticipate (1) a strong 2015 and (2) an even better 2016 driven by new products and significant margin expansion," analysts wrote in a note. Boston Scientific shares are trading at 12.3 times 2016 estimated cash EPS and a free cash flow yield of 7.9%, compared with large-cap peers at 15.3 times and 5.4% respectively. Shares have gained 2.3% in the last 12 months, while the S&P 500 has gained 12.3%.